Dear All,
Please inform me whether the contribution made by employer to PF of an employee is required to be shown as income and deduction in Form 16 to be issued to the employee in case the contribution is within the limit of 12%. e.g. if an employee earns a gross salary of Rs.300000/- p.a. and contributes Rs.36000/- to PF (12%) and the employer also contributes Rs.36000/-(12%) as his contribution. In such a case, whether his Form 16 will show his income at Rs.336000 (300000 Gross Salary + 36000 contributed by the employer to PF) and show deduction u/s 80-C of Rs.72000 (Rs.36000 contributed by him and Rs.36000 contributed by the employer) OR Income at Rs.300000 and deduction under Section 80-C at Rs.36000.
CAclubindia
